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FINANCIAL NEWS FOR WEEK 4 (26th

Aug to 30th

Aug 2013)

FinMin Chidamabaram justifies food, land bills

New Delhi, Aug 29 (IANS) The government Thursday defended the landmark food security billand the land acquisition and rehabilitation bill saying the markets couldn't be "spooked or ethused

by them".The food bill was passed by the Lok Sabha Aug 26, the land bill was taken up Thursday.

BSE Sensex surges 400 pts after Indian rupee rebounds vs US dollar, RIL,

HDFC shares soar

Mirroring the turnaround in the Indian rupee's value to the US dollar, stock markets today soared with

the S&P BSE Sensex logging its best gain in a week of nearly 405 points to end at 18,401.04 on

across-the-board buying after RBI opened a special window to help PSU oil firms meet daily forex

needs.

Moody's warns India over Food Security Bill, wields 'credit negative'

threat

Giving a thumbs down to the Food Security Bill, rating agency Moody's today said the measure is

credit negative as it will weaken government finances and deteriorate macroeconomic situation."Themeasure (Food Bill) is credit negative for the Indian government because it will raise governmentspending on food subsidies to about 1.2 per cent of GDP per year from an estimated 0.8 per centcurrently, exacerbating the government's weak finances," Moody's said in a statement.Moody'scurrently assigns 'Baa3' rating on India, with a stable outlook. 'Baa3' means medium grade with

moderate credit risk.

Rupee bounces from record low of 68.80; govt seeks solutions

The rupee rebounded on Thursday from a record low as the central bank sold dollars to oil companies,

while policymakers scrambled for more lasting solutions to what some investors are describing as a

crisis.

India might buy gold from citizens to ease rupee crisis

India is considering a radical plan to direct commercial banks to buy gold from ordinary citizens and

divert it to precious metal refiners in an attempt to curb imports and take some heat off the plunging

currency.A pilot project will be launched soon, a source familiar with the Reserve Bank of India's(RBI) plan told Reuters, although the idea was met with some scepticism

Dollar Swap may Leave Oilcos with High Forex Risk

The Reserve Bank of India's special window to sell dollars to state-run oil companies may have

helped the rupee rebound on Thursday, but experts say the move puts the oil marketers in high risk of

foreign exchange losses. While the RBIs move announced late on Wednesday has eased spot dollar

demand and gives a respite for the government to find ways to boost dollar inflows, Craig Chan,

executive director and head of forex strategy & fixed income division (Asia-ex Japan) at Nomura

Singapore, said oil companies will have to bear the brunt in case the rupee depreciates over the

medium term.

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GDP Nos. For Q1 Today, Likely to be Under 4.8%

The first quarter GDP numbers, to be released on Friday, are likely to confirm that Indian economy

faces a prolonged slowdown, creating more problems for policymakers already battling a gut-

wrenching volatility and depreciation. Most experts see the economy growing in the range of 4.3% to

4.7%, below 4.8% recorded last quarter, and this may not be the bottom yet. In an alarming note, BNP

Paribas on Wednesday said growth could drop to 3.7% for the entire fiscal 2013-14, lowest since

1991-92, implying that the next few quarters could be even worse.

Asian stocks rose in early trading and oil prices tumbled as a possible U.S.

military strike on Syria appeared less likely

The dollar remained around a three-week high against a basket of currencies after data showed theU.S. economy grew at a quicker-than-expected annual pace of 2.5 percent in the second quarter.TheGDP data, combined with a fall in weekly jobless claims, reinforced expectations that the U.S.

Federal Reserve will begin tapering its asset-buying stimulus as early as next month.

BRICS agree capital structure for development bank - WSJ

The BRICS bloc of large emerging economies have agreed on the capital structure for a proposed

development bank that aims to reduce their reliance on Western financial institutions, the Wall StreetJournal reported.

India finds price of expats' patriotism elusive as growth fades

The patriotism of wealthy overseas Indians has helped the country avert economic crises in the past

and it is little surprise that embattled policymakers are turning to them again to plug a record trade

gap that is battering the rupee.

MANAGEMENT TIPS

Learn How to Lead in a Crisis

When you are leading in a time-pressured, make-or-break situation, you might wonder if you should

take charge and command action or take the time to enable the innovation of others. You can do both.

Here are three things to do in a crisis that are both directive and empowering:

Set a vision that instills both realism and hope.Assess the current situation and how its

likely to evolve. At the same time, articulate the possibility of succeeding against all odds.

Bring people in. Set clear boundaries for who is on and off the core team, but invite in helpful

collaborators as well. People may have to work in fluid, shifting arrangements, rotating in and

out of teams as the demands of the situation evolve.

Engage. Dive in and start doing the work. Lead a disciplined, coordinated execution while also

encouraging innovation through experimentation and learning along the way.